India's FACT issues ammonia purchase tender for March

LONDON (ICIS)--Indian manufacturer Fertilisers and Chemicals Travancore (FACT) has issued its first ammonia tender of 2013, market sources disclosed on Wednesday.

FACT is seeking an 8,000-tonne parcel for delivery to Cochin by 20 March, although the exact volume could be plus/minus 5%.

The tender will close at 11.30am local time on 5 March and offers are requested to remain valid until 11 March.

FACT's previous tender in November for an 8,000-tonne ammonia parcel for first-half December delivery was scrapped after the two offers it received were deemed too high.

PIC Kuwait had offered the firm a cargo at $770/tonne (€593/tonne) CFR (cost and freight) and Qatar's Qafco at $780/tonne CFR.

Ammonia prices have fallen steadily in the past few months, with the benchmark Black Sea price standing at $550/tonne FOB (free on board) Yuzhny for March loadings, down $20/tonne on previous business in the Ukraine and $100/tonne less than November's price level.

The downward price trajectory is due to several factors, including softening demand from industrial and agricultural users in India, Korea and Taiwan, along with an improved supply situation from key ammonia-producing countries like Trinidad.